10 Tips for
Replacing Health Insurance Coverage

January 1, 2010

Changing health insurance is a ritual part of changing jobs, graduating from
school or starting your own business. Fortunately it is now a lot easier
and less expensive than in the past. Medsave.com is the nation's largest
online benefits enrollment service that offers this type of fast, affordable and
reliable coverage nationally with policies issued within one business day.
These ten tips will help you find the best value:

1.
Avoid changing health insurance companies if you have a serious medical
condition. Instead, contact your current insurer directly to ask about
"continuation of coverage" options. Almost every health insurance company
offers "individual conversions" from group plans when coverage is not available
under the law known as COBRA. Individual insurance policies are not designed to
pay for the cost of treating pre-existing medical conditions, but rather are
designed to pay for new problems that may arise after the insurance is in force.
If you have serious medical conditions and absolutely must change health
insurance companies, then learn about the state-mandate or assigned risk health
plan in your state (these special insurance plans are not handled by MedSave.com
and are only available "offline").

2.
Think short term. Most people who buy their own health insurance change
their coverage in less than a year. Buy the plan that offers you the best
deal now without concern for whether it will be available in a year. Next
year an entirely new generation of health plans will be available. A plan
that you bought more than a year ago would not likely represent the best value
for you today. Use short-term medical insurance plans, student medical
plans or foreign travel insurance plans if you qualify. These offer better
deals if you qualify.

3.
Choose a higher deductible. By taking a $1000 deductible, you will save
more than $1000 in premium payments over a year's time. This should be an
easy decision from a mathematical viewpoint. Some young people can buy a
high deductible insurance plan for less than $50 per month to cover any serious
medical issues.

4. Use
free enrollment offers. With an increasing number of plans now charging an
up-front enrollment fee, look for deals to save the enrollment fee whenever
possible. MedSave.com pays the enrollment fee for anyone switching from a
short term to a permanent insurance plan. Also, Health Savings Accounts
(listed below) are free to those who enroll in insurance at the same time.

5.
Choose indemnity type insurance and avoid HMOs whenever possible. This
lets you and your doctor maintain control of your medical care. There are
no required "networks"; you choose your own doctor and hospital and are free to
switch at any time. There are no limits on travel, since this type of
coverage is equally valid everywhere in the country.

6.
Take a separate plan if you travel outside the U.S. Most U.S. plans
provide weak foreign travel benefits and most worldwide plans provide weak
coverage in the U.S. SO it is best to carry separate plans tailored to
your travel schedule.

7. Be
aware of state-specific issues where you live. Each state controls its own
health insurance laws. Four states - MA, NJ, NY and VT - make it nearly
impossible for its individual citizens to buy low cost health insurance.
Residents of those four states must be prepared to pay more than those living or
visiting other states.

8. Pay
for several months of coverage at once whenever possible. Quarterly or
semi-annual billing is less expensive than month-to-month billing. Since
most plans accept credit cards, it even makes financial sense to "charge it" at
a lower premium rate and then pay off your own credit card over a few months.
The savings in insurance cost will be more than the credit card finance charges.
Be aware that a few health insurance plans do not issue refunds if you cancel
before the end of the period of paid coverage.

9.
Avoid the lesser-known insurance companies. Use the larger, well-known
national insurance companies with strong consumer reputations. Health
insurance premium rates are based directly on the benefits that the insurer pays
out to policyholders. It makes no sense to enroll into a plan where there
is a known issue of claims problems in order to find lower premium rates.
All of the large national insurance companies leaders listed at MedSave.com
maintain above average reputations for customer service and claims handling.
Try to use the insurance companies that are market share leaders in your
specific community. If you are unfamiliar with the companies available, an
independent enrollment adviser can list the market share leaders in the specific
type of coverage that is best suited to your situation.

10. Use a Health Savings Account. Pay for out-of-pocket expenses
with tax-deductible money. Health Savings Accounts require a specific type
of insurance that is not available to everyone. There are usually no
commissions, account fees or charges for those who qualify for this type of
health plan. More information is available at http://www.healthsavingsaccount-hsa.com.